Qualcomm 3Q profit rises 4 percent, revenue down

Jul 21, 2010 By ELLIOT SPAGAT , AP Business Writer

(AP) -- Qualcomm Inc. said Wednesday that its fiscal third-quarter profit rose 4 percent and revenues fell less than analysts expected, allaying concerns among investors that the developer of wireless chips and technologies was failing to capitalize on consumers' appetites for smart phones.

Qualcomm earned $767 million, or 47 cents a share, during the three-month period ending June 27, compared to a profit of $737 million, or 44 cents a share, during the same period last year. The latest result includes a loss of 7 cents a share from share-based compensation and 3 cents a share from tax items.

Excluding those charges, earned 57 cents a share, 3 cents higher than estimated by analysts polled by Thomson Reuters.

Revenue slipped 2 percent to $2.71 billion from $2.75 billion, but it was higher than the $2.63 billion that analysts expected.

The San Diego-based company disappointed investors the previous two quarters as prices for phones fell sharply and cut into royalty payments. Qualcomm sells chips to phone makers and collects licensing fees from companies that use its patented technologies.

Bill Kreher, an analyst at Edward Jones, said the results show that Qualcomm is in well-positioned to benefit from the spread of the high-end phones.

"The shipments were stronger than we anticipated and the average selling price held up better than some had feared," he said.

Qualcomm said that it shipped 103 million chipsets during the quarter, up 10 percent from last year.

The company estimated that its licensees shipped between 134 million and 138 million devices at an average price between $183 and $189. Bill Keitel, Qualcomm's , said the price rose from the previous three-month period due to spread of high-end phones.

Qualcomm raised its 2010 revenue estimate by $300 million to between $10.7 and $11 billion,

The results were released after markets closed. Qualcomm shares fell 59 cents, or 1.6 percent, to $36.16 during regular trading, but rose $1.52 after hours. The shares have fallen about 25 percent since January.

Explore further: Jury says Silicon Valley firm did not discriminate (Update)

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Qualcomm posts 2Q profit, gives tepid 3Q outlook

Apr 21, 2010

(AP) -- Qualcomm Inc., whose chips and other technologies are used in vast numbers of cell phones, raised its earnings estimate for 2010 on Wednesday on solid second-quarter results. But its short-term outlook ...

Qualcomm stock tumbles on cautious forecast

Jan 27, 2010

(AP) -- Qualcomm Inc., whose chips and other technologies are used in vast numbers of cell phones, sounded a cautious note on the economy on Wednesday, saying a "subdued" recovery forced it to slightly dial ...

Qualcomm posts 2nd-qtr loss on legal settlement

Apr 27, 2009

(AP) -- Qualcomm Inc. posted a fiscal second-quarter loss Monday on a hefty payment to rival chip maker Broadcom Corp. to end legal disputes that spanned several continents.

Texas Instruments 2Q profit falls 56 percent

Jul 20, 2009

(AP) -- Chip maker Texas Instruments says its second-quarter earnings fell 56 percent from a year ago, clipped by a weak economy that the company expects will "take some time" to strengthen.

Rackspace 1Q profit rises

May 03, 2010

(AP) -- Rackspace Hosting Inc. said Monday that its first-quarter profit rose as managed hosting revenue climbed.

TI 2Q revenue rises 42 pct as demand roars back

Jul 19, 2010

(AP) -- Texas Instruments Inc.' second-quarter income and revenue jumped as demand continued to recover after the recession. The company predicted even better results in the new quarter.

Recommended for you

Intel in talks with Altera on tie-up

20 hours ago

US tech giant Intel is in talks with rival Altera on a tie-up to broaden the chipmaker's product line amid growth in Internet-connected devices, the Wall Street Journal reported Friday.

Apple chief Cook to give his wealth away: Fortune

Mar 27, 2015

Apple chief Tim Cook is joining Mark Zuckerberg, Bill Gates and other technology titans who have vowed to donate their wealth to charities, according to a report in Fortune magazine.

BlackBerry tops 4Q profit forecasts

Mar 27, 2015

BlackBerry posted a surprise profit in the fourth quarter, but saw a sharp drop-off in revenue as the once-iconic smartphone company said it reached the halfway mark of its turnaround effort.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.